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Microsoft confirms next-gen Xbox consoles, AMD deal, backward compatibility

Author : Olivia
Oct 03,2025

Microsoft and AMD Join Forces for Next-Gen Xbox Consoles

Microsoft has officially revealed a collaboration with AMD to develop the next generation of Xbox hardware, encompassing first-party devices and cloud gaming solutions.

Powering the Future of Xbox

"We're proud to announce our partnership with AMD to co-engineer the next wave of Xbox devices, including our future console lineup," Microsoft stated in an online announcement.

Cutting-Edge Gaming Technology

While specific details remain under wraps, Microsoft promises "groundbreaking performance, advanced graphical capabilities, innovative gameplay experiences, and complete backwards compatibility." The company emphasized all new hardware will seamlessly support players' existing Xbox game collections.

Play

"Through our multi-year strategic partnership with AMD, we're developing custom silicon solutions for our next-gen Xbox consoles and other gaming devices," Microsoft explained. "This collaboration will deliver enhanced visual fidelity, deeper immersion, and AI-powered experiences - all within an open ecosystem compatible with your current Xbox library."

Expanding the Xbox Ecosystem

In an accompanying video presentation, Xbox President Sarah Bond outlined Microsoft's vision for "a comprehensive next-gen hardware portfolio spanning consoles, handheld devices, PC platforms, cloud services, and accessories."

The announcement confirms Microsoft's commitment to both traditional home consoles and handheld gaming solutions. While release dates weren't specified, Bond expressed enthusiasm about sharing more details in the future.

Xbox Hardware Roadmap

Industry reports from earlier this year suggested Microsoft aims to launch new Xbox hardware by 2027, with the next console reportedly adopting more PC-like architecture and supporting third-party stores like Steam, Epic Games Store, and GOG.

Bond's comments reinforce this direction: "We're building a gaming platform that goes wherever you do, enabling play across devices while maintaining your complete Xbox experience - unrestricted by storefronts or hardware limitations."

"Our collaboration with the Windows team ensures gaming remains at the forefront of the PC platform," Bond added regarding Microsoft's cross-platform strategy.

Immediate Hardware Plans

In the near term, Microsoft is working with partners on Xbox-branded devices like the upcoming Xbox Ally handheld - a Windows 11-based gaming PC optimized for portable play, expected to launch later this year.

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